in Montreal, Quebec, Startups

Garage invests $2.5 Million in Lure Media, now a software startup

MontrealTechWatch got to it first, Lure Media, a Montreal based company had a busy week last week. While the rest of us were filling up on Turkey, they closed a deal to purchase IMPACT, IS, the makers of two products: Impact Designer and Impact Showroom. Before that was done however, they signed off on $2.5 Million in funding from Garage Canada.

Impact has been around for over 20 years, and is a well-established leader, Lure Media now seems set to position themselves primarily as a software provider with ancillary support services. They will also launch an entirely new piece of Business-to-Business software they are describing as: ” Business-to-Business Exchange supporting the global commercial and residential interior design industry. ETERIORS will link manufacturers of luxury lifestyle products to their respective dealers, interior design professionals and high-spend customers on a transactional, digital backbone that evolves into the standard network for electronic commerce and rich media in the global luxury lifestyle market.

It is interesting to see Garage Canada play a role you might expect more traditional private equity group to handle. While this deal is probably the size Garage Canada is more comfortable with, the deal may have just been too small for the larger equity players, leaving a nice gap for Garage to fill with what is probably a safe bet in comparison to typical VC deals. The fact that they are launching a new product out of the merger also puts the deal closer to Garage’s territory.

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